Tesco posts modest Christmas performance

The UK’s biggest supermarket said the heavy snowfall and freezing temperatures particularly hit its non-food offering as customers were unable to travel to their larger stores.

Sir Terry Leahy, chief executive, said: “Our performance remains solid but was hindered in the run up to the important Christmas trading period in the UK by the disruptive effects of the severe winter weather conditions.”

The results follow strong figures from rivals Sainsbury’s and Morrisons.

However, the firm reported strong like-for-like sales of food in the UK, while its online business, Tesco Direct saw sales grow by 18%.

And there was continued growth overseas, with total international sales over the six-week period up by 14.2%. Sales rose by 24.2% in Asia, driven especially by Thailand and China.

In the US, total sales climbed by 36.9% at its Fresh & Easy convenience store business.